SPWR Q2'25: $67.5M Revenue, $2.4M Operating Profit
OREM, Utah, July 22, 2025 (GLOBE NEWSWIRE) -- SunPower, formerly d/b/a Complete Solaria, Inc. ("SunPower" or the "Company") (NASDAQ:SPWR), a solar technology, services, and installation company, will present its Q2'25 results via webcast today Tuesday, July 22 at 1:00pm ET. Interested parties may access the webcast by registering here or by visiting the Events page within the IR section of the company website: https://investors.sunpower.com/news-events/events.
Fellow Shareholders:
The preliminary Q2'25 quarterly report of key financial parameters is shown below. The final Q2'25 quarterly report will be the 10Q report2 to be filed with the SEC on August 13, 2025.
SunPower Revenue & Operating Income1
Our First Two Quarters of 2025, Using Accounting Methods from Audited 10K
GAAP2
NON-GAAP3
($1000s, except gross margin)
Q2 2025
Q1 2025
Q2 2025
Q1 2025
Revenue
67,524
82,740
67,524
82,7404
Gross Profit
28,761
32,497
28,761
32,497
Gross Margin
43%
39%
43%
39%4
Operating Exp.
31,479
31,455
26,343
29,559
Operating Exp. (less commission)
22,424
23,771
17,2885
21,8755
Stock Comp., Intangible Costs6
5,136
1,896
0
0
Operating Income Exp.6 (loss)
(2,718)6
1,042
2,4186
2,938
Cash Balance7
11,125
10,553
11,125
10,553
_______________________
1 Operating income based on the non-GAAP results posted on our website [us.sunpower.com].2 To see our 2025 GAAP financial statements, go to the SEC 10Q filing on our website.3 Our non-GAAP financials are used to run the company and differ from the official GAAP report in three ways: no non-cash amortization of intangibles, no employee stock compensation charges (already reflected in share count) and no one-time M&A or downsizing events. (See note 4.)4 The Q1'25 revenue and gross margin reported in our unaudited April 30, 2025 shareholder letter were lower, $80,174 and 36%, respectively. These figures were accurate and conformed to our CSLR revenue recognition standards at that time. The numbers presented here are re-calculated to use the revenue recognition standards created for the merger, approved by our auditors.5 Vigorous cost reduction program cut operating expense by $4,587.6 GAAP operating income is $5,136 lower than non-GAAP operating income due to non-cash events: $3,717 in stock-based compensation and $1,419 in amortization of intangibles.7 Cash balances exclude restricted cash.
SunPower CEO, T.J. Rodgers, commented, "My last shareholder letter presented models for the impact on the solar industry of losing the 30% ITC tax subsidy ("Free at Last"). That market elasticity model showed that our then-current revenue of about $80 million per quarter would shrink to $74.6 million when the effective ITC price increase cooled down the market in Q1'26. We then extended the model to study bigger quarterly revenue reductions to $71 million, at which the company still would be profitable. However, our Q2'25 actual revenue dropped to $67.5 million, further and faster than our predictions, but we still made a $2.42 million operating profit, due to a vigorous effort in reducing our operating expense from $21.9 million in Q1'25 to $17.3 million in Q2'25, a full $4.6 million improvement (footnote 5). In addition, we focused on our most profitable market segments, which raised gross margin from 39% to 43%.
Rodgers continued, "The ITC revenue deep freeze was so fast and steep, it reminded me of my hometown of Oshkosh, Wisconsin when I woke up on January 31, 1967, the day after a typical "balmy" +5oF degree winter day, and it was 18oF below zero. That was also the day of the famous 1967 Ice Bowl game in Green Bay in which the Packers beat the Dallas Cowboys to win coach Lombardi's fourth NFL championship. (Two weeks later the Packers beat the AFL champion Kansas City Chiefs in a game that would later be re-named Super Bowl I.) To wrap up the analogy, our current bookings are warming up and indicate that Q2'25 will be the end of the revenue freeze."
When I got up on December 31, 1967, an arctic front had blasted us with windy (note the flag) ‑18oF weather on the day of the NFL Championship with the Dallas Cowboys, later dubbed the Ice Bowl. At that temperature, the fans' breath immediately froze into an ice cloud that hung over Lambeau Field.
Summary of Q2'25 SunPower Results
Our revenue dropped to $67.5 million, but we remained profitable
Our operating profit was $2.42 million, about the same as the prior quarter, but on $15.2 million less revenue, because of $4.59 million in cost cutting, an effort still underway
SunPower "found another gear" in its cost reduction program. We are now down to 861 people, each of whom will receive $500 in a stock bonus (about 0.4% annualized dilution) for excellent quarterly performance
unPower Headcount History
Outlook
For Q3'25 vs Q2'25, we forecast modestly increased revenue (about $70 million)
And increased operating profit (about $3.0 million)
Subsequent Events
The SunPower estate signed an agreement with us on the last day of the quarter that authorizes us to collect all Old SunPower New Homes' accounts receivable. This unnecessary AR controversy impeded collections in Q2'25, delaying $16 million in AR owed to our New Homes business that we are planning on being collected this quarter, with another tranche following in the fourth quarter.
SunPower joined the Russell 3000 and Russell Microcap Indices. It will expand our shareholder base and increase the liquidity of our stock. The Russell Indices are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies.
India low-cost finance center created. Chennai, where we've engaged with two companies, has become our low-cost center for finance, including SOX. Excelencia, a company that uses "Chartered Accountants," aka CPAs, will be doing most of our accounting work, and MylAI will be using its proprietary AI software to automate business processes for us.
CFO Dan Foley is leaving SunPower. He and I agreed last year that he could leave SunPower, but not before the 10K was filed and he had created a low-cost finance center in India. That's now done, and Jeanne Nguyen, our Chief Accounting Officer, has become the interim CFO. We would like to thank Dan Foley for his hard work during the last year as we acquired and integrated SunPower, a company 10 times our size.
CLO and General Counsel Chais Sweat has left SunPower. Our new CLO, Nicolas Wenker, joins us with extensive in-house legal ...
